Netflix named Microsoft as its official partner in the making of a new ad-supported version of the streaming platform. In order to reach different
Netflix named Microsoft as its official partner in the making of a new ad-supported version of the streaming platform.
In order to reach different audiences and decrease the subscriber losses, Netflix has decided to work with Microsoft to create a new payment plan that supports ads. This agreement was made in July 2022 but officially launched in November.
The plan, now known as Basic with Ads, was launched in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States. The advertisements will run from 4-5 minutes per hour with each ad ranging from 15-30 seconds in length.
Currently the streaming service offers 3 payment plans: Basic, Standard, and Premium. The plans start at $9.99 for Basic, $15.49 for Standard, and $19.99 for Premium. What’s the difference? Well, the higher the payment plan, the better the quality and the more shows there are. The new Basic with Ads plan will be $6.99 in the U.S.
Netflix has formed collaborations with DoubleVerify and Integral Ad Science to authenticate the viewability and traffic legitimacy of advertising starting in Q1 of 2023. Advertisers have the broad targeting power to focus their audience.
Kurt Jackson, the founder of Software Consulting Services, hailed the collaboration as ground-breaking. His company installs production suites for platforms including advertising, production, and content management across several vertices.
Jackson claimed that two huge companies like this coming together “is always going to be interesting.” He also stated that Netflix’s choice of company was logical. Most other large companies that Netflix could have worked with are already associated with – or own – other streaming platforms, so Microsoft was the logical choice,” he said.
He also went on to say that Netflix needs to tread lightly. They don’t want the insertion of advertising to jeopardize the viewing experience, according to Jackson.
On the launch day, Netflix made a statement commending Microsoft saying, “None of this would have been possible without our team’s hard work or Microsoft’s extraordinary partnership.”
“While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”